Housing stock returns and rising interest rates. Is there an Inverse Correlation?

Authors

Presenter(s)

Thomas F. Roebker

Comments

Presentation: 9:00-10:15, Kennedy Union Ballroom

Files

Description

The demand for housing is considered to be inversely related to rising interest rates, particularly mortgage rates. In this study, however, I make the assumption that the Federal fund rate is a predictor of a future decline in economic activity which should be reflected in stock returns for the housing sector. I look at four periods of rising Federal Fund Rates spanning the overall period 1999-2023. If the distribution of returns is skewed left, then my assumption holds. If skewed to the right, then it does not hold. I utilized the top 20 stock returns by market capitalization in the housing sector to carry out my analysis.

Publication Date

4-17-2024

Project Designation

Independent Research

Primary Advisor

Robert D. Dean, Jon A. Fulkerson, Henry G. Willmore

Primary Advisor's Department

Economics and Finance

Keywords

Stander Symposium, School of Business Administration

Institutional Learning Goals

Scholarship; Vocation; Community

Recommended Citation

"Housing stock returns and rising interest rates. Is there an Inverse Correlation?" (2024). Stander Symposium Projects. 3309.
https://ecommons.udayton.edu/stander_posters/3309